Has The Competition Outsmarted You?
We all know it costs more to acquire a new customer than it does to retain an old one but let’s look at it in more detail.
Consider this: you’ve worked hard at creating nifty new marketing initiatives with the result that each customer now costs you a mere £10 to acquire. The competition is spending £20 per customer. Delighted with your performance, you sit back to watch your market share grow.
While you concentrated on acquiring new customers, your competitor worked on measuring and improving their customer lifetime value.
They were able to identify, acquire and secure the loyalty of their most valuable customers whilst discouraging relationships with unprofitable ones. Deepening their customer insight they were able to offer appropriate and timely complimentary items and services their customer appreciated and passed onto to their friends.
Their average customer now comes back to buy at least ten more times with an average order value of £20 each time. They'll easily generate over £200 per customer from their initial £20 marketing spend.
You, on the other hand, are only generating £20 in total revenue.
The result? The competition can continue to acquire and cultivate valuable customers, ultimately dominating the market. Unless you begin to maximise your customer lifetime value too...
Boost Lifetime Value
Portal can offer a range of predictive modelling solutions to help you analyse the lifetime value of all your customers and predict and prevent your customer churn rate.
We can also help you better engage customers, offer a seamless service and create an exceptional customer experience that will win their hearts and minds for good.
To learn about more powerful customer experience solutions sign up for free resources on the left hand side of this page or get in touch with us today.